NFT Art Marketplace, How to Make Money? 20 Facts
The last few months have seen NFTs take the internet by storm as covered in detail over at runrex.com. NFTs have brightened things up a bit for creators, allowing artists to monetize their work by selling to eager collectors, while also collecting due royalties upon future resales of their works. Through the following 20 facts, this article will look to discuss what NFTs are, popular marketplaces, and how you can make money from selling NFTs on said marketplaces.
What are NFTs?
Straight off the bat, we should start by defining what NFTs are. As explained over at guttulus.com, non-fungible tokens (NFTs) are cryptographic tokens that represent digital ownership of unique items such as art, music, gaming skins, and more. NFTs and non-fungible, which means that they can’t be divided and are unique and verifiable through blockchain technology.
Minting
Another term that you will regularly come across when dealing with NFTs is minting. As is covered in detail over at runrex.com, turning a regular digital asset into a non-fungible token (NFT) is referred to as “minting” which “tokenizes” the digital asset on the blockchain.
What is tokenization?
According to discussions over at guttulus.com, tokenization is the conversion of physical or virtual assets into digital units that can be bought and sold. It eliminates territorial barriers and intermediaries while enabling fractional ownership of assets, opening up the market to small investors.
NFT art marketplaces
NFT art marketplaces are where NFTs are minted and sold – identified by blockchain technology. Not all marketplaces can facilitate the same NFTs because of the various token standards. This is why it is important to do your research before trying out any NFT platform or marketplace.
Examples of popular NFT marketplaces
The following are some of the popular NFT marketplaces out there.
OpenSea
This marketplace touts itself as the largest marketplace in the NFT space with over 4 million items and 200 categories. It offers an easy-to-follow onboarding experience for users who are new to the crypto space making it a good choice if you are just starting. It also offers sellers the ability to create a storefront to show off their pieces, something that has yet to be seen on a lot of the other NFT marketplaces. As a seller, you only pay a one-time fee for listing your piece, and transaction fees from there on are on buyers.
Rarible
This community-governed marketplace focusing on art collectibles was founded in early 2020 as discussed over at runrex.com. It features some of the top sellers in the space which means you are bound to be surrounded by the greats in the NFT space. However, fees can be pretty hefty on Rarible on the seller side, bearing both the burden of the gas fees for each bid received, as well as a gas/transaction fee every time a piece is sold.
SuperRare
This is the premier destination in the NFT art space as it vets artists through an extensive application process. According to guttulus.com, SuperRare is a highly curated marketplace focusing on quality over quantity, and transactions on the platform are smooth, with a simple fee structure to boot.
Zora
This is another invite-only NFT marketplace that follows the same tokenizing structure to add value to your art through cryptocurrencies. From discussions over at runrex.com, the platform has a simple UI that makes it easy to use and it also has attentive support if you need it, as well as a Discord community where you can build connections with other NFT artists and get an idea of how to navigate the NFT marketplace.
Nifty Gateway
This marketplace is also invite-only and its mission is to make NFT art accessible to everyone. It is known for the way it creates excitement and hype around limited-edition drops for the artists on its marketplace – doing drops every 3 weeks, selling out consistently. It also allows artists to partake in a secondary marketplace and set up royalties easily.
Foundation
This is a community-curated NFT marketplace focusing on digital arts, with the growth of the community being in the hands of the creators as they need to send creator invite-links for others to join. Setting up a Creator Profile is as easy as getting an invite link, connecting your digital wallet, and then you start running auctions yourself on the platform.
These are some of the popular NFT art marketplaces, although there are many others out there for you to check out.
Tips on how to make money on NFT art marketplaces
While each marketplace is different, the following tips should help you make money when as a creator and artist on these platforms.
Get set up
To get started on any NFT art marketplace, you have to make an account using a web3 wallet such as MetaMask as discussed over at guttulus.com., and then fill out your profile to build trust with buyers on the platform. NFTs are sold using cryptocurrency which is why a cryptocurrency wallet is required to participate in transactions on these platforms.
Get a feel for the market, the artists, and other collectors
Once you have gotten yourself set up, you should start by checking out the activity and marketplace pages as this will allow you to see what works are selling, for how much, and who is most active as covered over at runrex.com. Getting a feel for the market, artists, and other collectors is important if you are to be successful on these platforms.
Check out the overall artist stats
Once you have gotten the hang of things, you should then check out the all-time artists’ stats page to get a sense of artists’ token supplies, average sale price, and total number sold. According to the gurus over at guttulus.com, artists that pay attention to scarcity and don’t flood the market maintain a higher average price, and their works generally maintain good value over time.
Pick a few individual artists and go deep into their collection
Once you have gotten a high-level view of the artists’ stats page, you should pick 3-4 individual artists and check out their profile and collection to learn more about their style, price history, and how many pieces they own out of their total supply. This will also provide you with valuable information that will help you be successful in the marketplace.
Build your collection
There are two main ways through which you can build your collection on these NFT marketplaces: you either mint your own artwork or you purchase art from other collectors and artists. When making a purchase, you should consider the overall scarcity or supply of the artist, the average sale price of the artist, the social or web presence of the artist, and whether the art speaks to you.
Showcase your collection and connect with the community
Once you start building your collection, you will have a collection page that you can view and share online as outlined over at runrex.com. Many collectors additionally showcase their collection in Ethereum’s VR metaverse – Cryptovoxels and Decentraland. You should also consider connecting with artists and collectors on Twitter, and other social media platforms.
Set sale prices
When you are looking to sell a piece, you can set a sale price on it, which will then show up in the marketplace. As per the gurus over at guttulus.com, it is important to also announce to your social channels that you are looking to sell or make a trade with another collector to create awareness.
Manage incoming bids
For most marketplaces, you will get an in-app notification, an email, or both, whenever you receive a bid or make a sale as articulated over at runrex.com. It is important to be on top of these transactions and manage all your incoming bids to keep track of your activities. Keep an eye on your purchase and sale history and monitor stats like your average resale price in ETH, among others.
Buy in bulk and sell individually
You should scout the marketplace that you are on for sellers who are trying to sell large quantities of items and offer them a bulk price. Larger investors can’t be bothered listing individual items and wait for each to sell, therefore, when you put money on the table for all of their portfolio, it is very hard for them to turn down the offer. You can then sell the items you buy individually, and, chances are, you will make a big profit.
Rely on skill rather than just HODLing
You need to improve your transaction skills on these marketplaces. This means getting better at scouting opportunities, negotiating, finding buyers, networking, as well as keeping on top of strong markets. This is what will allow you to make money on NFT art marketplaces and is a much better strategy to simply HODLing your art.
Hopefully, the above discussion will help you know some of the popular NFT marketplaces and how you can make money over there, with more insights on this topic to be found over at the top-rated runrex.com and guttulus.com.